Digital Intelligence Firm Cellebrite To List Publicly Via SPAC At $2.4B Valuation

By NoCamels Team April 11, 2021 2 minutes

Cellebrite offers solutions to access locked and encrypted devices to obtain critical digital evidence. Photo via Cellebrite.

Israeli digital intelligence and forensics firm Cellebrite announced late last week that it entered into a definitive agreement with San Francisco-based SPAC (special purpose acquisition company) TWC Tech Holdings II Corp to go public on the Nasdaq at a valuation of approximately $2.4 billion post-merger. The company will trade under the new ticker symbol “CLBT.”

Founded in 1999, Cellebrite offers digital intelligence and forensics solutions for law enforcement agencies, government authorities, and enterprises, to help accelerate investigations. Cellebrite says its solutions have been purchased by 6,700 public safety agencies and private sector enterprises in over 140 countries, playing a part in millions of investigations globally.

The company made international headlines in 2016 for helping US authorities crack the iPhone used by the terrorist who perpetrated the 2015 San Bernardino, California shooting. In 2018, Cellebrite announced that it can crack nearly every mobile phone and tablet on the market, raising security and privacy concerns.

Cellebrite is headquartered in Petah Tikva and operates five additional offices around the world, with a total of 800 employees. In 2007, Cellebrite was acquired by Japanese manufacturing giant Sun Corp. for $17.5 million and has since been its wholly-owned subsidiary.

According to the announcement last week, Cellebrite’s management team will continue to operate the business with Yossi Carmil also continuing to serve as CEO.

“Cellebrite’s vision is to provide industry-leading technology and a holistic DI [digital intelligence] solution that enables our customers to transform and digitize their entire investigative process,” Carmil said in a company statement. “As a result of the transaction, we will seek to build upon our leadership position by making strategic, targeted investments to expand our capabilities, deepen our position in the public sector and attract new customers in the growing private sector market.”

Carmil added that Cellebrite recognizes “the immense responsibility that comes with operating a business that partners with law enforcement agencies but protects the privacy of citizens. To that end, Cellebrite and our Board have a deep commitment to creating a safer world and to operating in a lawful and ethical manner that is unwavering.”

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TWC Tech Holdings CEO Adam Clammer said the company “is focused on investing in leading technology companies, and the Cellebrite opportunity ticks all the boxes on our wish list for a long-term investment in a public company.”

“Cellebrite empowers public and private sector customers to drive the digital transformation of the investigative workflow through its advanced technology. Importantly, Cellebrite’s technology helps bring justice to victims of crimes, including cases of child exploitation, violent crimes such as homicide and sexual assault, drug and human trafficking, fraud and financial crime. We are proud to be partnering with a company that is having a real impact on these issues,” added Clammer.

The transaction is expected to close later in 2021.

Upon closing, some $580 million in cash comprised of TWC Tech Holdings’ cash held in trust, will be available to Cellebrite and TWC Tech Holdings’ shareholders will receive a combination of cash and stock in Cellebrite. The transaction also includes a private investment of approximately $300 million in Cellebrite ordinary shares that will be purchased directly from the company’s existing shareholders.